The Pakistan UAE loan repayment decision has been finalized as Pakistan plans to return $2 billion to the United Arab Emirates by the end of this month. The move comes amid changing global financial conditions and follows a request from Abu Dhabi.
According to sources in the Ministry of Finance, the amount was kept in Pakistan’s account as a safe deposit. Islamabad had been paying around 6 percent interest on this deposit.
Earlier, the United Arab Emirates had been rolling over the amount on a yearly basis. However, in December 2025, the rollover period was shortened first to one month and later extended by another two months.
Officials say the recent international situation played a key role in this development. The UAE reportedly asked for the immediate return of the funds, prompting Pakistan to make arrangements for repayment.
The development is important for Pakistan’s financial position, as the country manages its external obligations and foreign reserves carefully. Economic experts believe such repayments reflect ongoing financial coordination between the two countries.
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